With the burst of the housing bubble, credit crisis, and millions of foreclosures across the country, you may wonder if buying a home is such a good idea after all. However, it’s important to consider all of the facts. The important message to take away from these events is not that buying a home is a bad idea, but that you must be smart about buying your home.

The housing market, like every type of market, unavoidably has its ups and downs. That doesn’t mean buying a home is a bad investment. As a long-term investment, homeownership is still one of the best investments for individual households. Historically, real estate has consistently increased in value, despite shorter periods of depreciation due to local markets and/or national economic conditions. The data shows that homes generally appreciate about 5% per year.

Savings & Investment

Five percent may not seem like a great return on investment, but you have to think about it in the context of the situation. For example, let’s say you put 10% down on a $200,000 house. That’s a $20,000 down payment, or initial investment. At a 5% annual appreciation rate, your $200,000 home would gain $10,000 in value during the first year. Earning $10,000 on an investment of $20,000 is a whopping 50% return.

For further perspective, let’s say instead of spending that $20,000 on a down payment, you invested it in the stock market. With a 5% return, you would gain only $1,000 in profit.

Tax Benefits

So now you’re saying that a home may have a higher return, but that’s before you consider all of the costs of home ownership, such as taxes, etc. Well, think of it this way: your property taxes as well as the interest on your mortgage are both tax deductible. You can deduct those costs from your income, thus reducing your overall taxable income. In other words, the government is subsidizing your home.

Other Benefits

It’s easy to get carried away with all of the economic reasons for home ownership, but it’s important to remember that not every reason is financial. Have you ever wanted to paint the walls of your apartment? Well when you’re renting, you can’t. Has anything in your apartment ever needed updating, but the landlord refused to do it? When you own a home, you can make the space yours in almost any way you want. And you benefit when you do home improvements, both financially and psychologically. Homes generally have more space, for storage, living, etc. than other living arrangements. Not to mention that you have space outdoors for barbecuing, pets, and kids. Owning your home carries with it a sense of pride, accomplishment, and even an elevated social status.

So when you’re considering buying a home, consider the broad range of benefits that owning a home can have. And always make sure you have an experienced real estate agent and loan officer to help make sure you’re getting a home that is right for you, both financially and psychologically.

Many more homes to choose from. Click on "Search MLS" button to search for properties!

Testimonials

I can't thank you enough for all of your help and guidance on this very bumpy journey. You have shown great patience with me and for that I am grateful. When I look back on this endeavor, you will always be a part of that memory. Thank you for all of your kindness.
Sincerely,

TL

It took a bit to finally take a deep breath and start thinking about all the people who helped us get to our retirement phase of life. You were the one who helped the most. I always knew you were good at your job, but now I truly understand. Thank you for everything!
M & L

You are the best agent! We were very fortunate to have you work for us! Thanks for all your hard work!M & C

Just a note to say thanks for your patience and help in finding the right house for us. We couldn't be happier with our new home."
E&B

"I can't thank you enough for this wonderful achievement I have made! You have been so helpful."
K.P.

"We can't thank you enough for helping us sell and buy our homes. You have lifted our spirits when needed and soothed our souls. This challenging process was made so much easier because you were always available for help. Thank you for always being there. You are a friend forever."K&S

"Thank you for finding us a wonderful home. We couldn't be happier. We appreciate all your hard work."
J and L

Thank you for going the extra mile to make the sale of my house successful. I appreciate all of the effort and time you put into every transaction for me.D.Y.

"How can we find enough words to say thank you for all your professional expertise to "steer" us through the difficult process of finding, selling and buying a new home. We are so happy here." Ralph and Nancy

Dan, you have no idea how much you have changed our lives! Thank you so much!"
S&S

"Thank you for all your help, time, patience and hard work. We appreciated it all!"Stephanie and Paul

"John and I want to thank you for once again going above and beyond for us. We don't think of you as our Realtor, but as our friend."
Thanks,
Donna and JohnD and J

"You are the hardest working man in real estate! From the very first meeting with you we were put at ease by your calm demeanor and professional nature. You have been a fabulous listener and a kind director. We are moving into our dream house because of the work you have done for us. We wish you could sell us something else...so we could still get to see you!"Greg and Martha

"Thank you for hanging in there with us for such a long journey. At times things seemed to be a bit rough, but we always kept faith in you and things worked out!"
Brenda and Dan

" I want to sincerely thank you for all you did during the recent sale of my house. As you know, it was a very tense and emotional time for me. You were there every step of the way to answer questions or discuss concerns, explain what was happening and help find people to perform the work that needed to be done. Your professionalism, calm manor and optimism about the sale helped me through the down times. You also went above and beyond what was called for to ensure the sale. I want you to know this was truly appreciated. I would not hesitate to highly recommend you to anyone buying or selling a home in the area. Thank you again for all the hard work and dedication. I truly could not have asked for more."
Mary Ellen C.

" I wanted to write you this note to let you know how much my family appreciated all of your help. I hope our relationship can continue for many more years."Tom G

"Jon and I cannot thank you enough for all your hard work to get us here so smoothly. You make it look so effortless even though it was a very tedious process. Choosing you for our realtor was the best decision we made."
John and Stacey

"I just wanted to let you know how much I appreciate all you did during the sale of the property. With Dad's illness and passing your friendship and professionalism enabled the brokering to be stress free."
M.L.M

"You have gone above and beyond for us and for that we always be greatful."Rick & Nicole Easthampton

"Thanks so much for all your help in finding our home. We love it!"Anna and Dan (S. Hadley)

Thank you so much for all your help getting our new home. We love it here. You helped make buying our home a great experience."
Michelle and Phil - Huntington

"Thank you for helping our parents sell their home. This was such an emotional time for them and we appreciate all your time and patience to make it happen."John and Donna , Northampton

"I just wanted to say thank you again for your hard work and compassion. You made a very difficult time in my life easier to deal with and I greatly appreciate that and all that you went out of your way to do."Cheryl , Granby

"Thanks so much for all your hard work to get us into our new home."Jimmy and Dian , Easthampton

"Thank you for helping us throughout our house building process. We think you did a fantastic job and we enjoyed working with you."Brian and Pam, Easthampton

"Thanks for all your help. We love our condo!"Walter and Gail, Easthampton

We just wanted to say thank you for all of your help in buying our home. Your sense of humor and pleasant ways made us feel at ease."
Julia and George

"Thank you for your help, patience and endurance selling the house. I felt very comfortable with you as my real estate agent."
Krista, Northampton

"Thank you for all your help, humor and patience. Mike and I love the house more everyday. I'll recommend you to everyone!"Rita and Mike, Easthampton

"Thank you for all your help, humor and patience. Mike and I love the house more everyday. I'll recommend you to everyone!"Beth, Easthampton